With the Dow Jones gathering steam last night as investors focused on Trump’s controversial ‘aid’-extending executive orders, the European markets exploded out of gate on Tuesday morning.
Specifically, this meant the FTSE could ignore the latest jobs data out of the UK. The headline figure was that 730,000 jobs have been lost across the first 4 months of the covid-19 pandemic, based on the number of pay as you earn payrolls – that’s an 114,000 increase in June alone.
There was also a worse than forecast claimant count change reading for July, with an extra 94,400 people now seeking unemployment-related benefits – far higher than the 9.7k expected, and a huge swing from the (upwards revised) 65,500 drop seen in June.
All of this means news of a steady unemployment rate of 3.9% for the 3 months to the end of June, avoiding the estimated increase to 4.2%, rang hollow.
Unfussed, the FTSE climbed 1.5%, hitting an August-high of 6140. The DAX and CAC were even stronger, surging 1.9% apiece to reach 12900 and 5000 respectively.
Choosing not to linger on the US-China tensions – the latest development in which was Beijing slapping sanctions on the likes of Ted Cruz and Marco Rubio – the Dow Jones is aiming to add another 150 points this afternoon. That would leave the Dow at 27930, its best price since late-February, and around 1500 points away from its all-time highs.
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